SteelMint launches India's domestic steel scrap index
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SteelMint has launched the India's domestic steel scrap index today on 21 Oct'20 on DAP, Mandi Gobindgarh basis. The index launched is the melting scrap (end cutting) traded in the Mandi Gobindgarh on a DAP (Delivered at Plant) basis.
The Index will also derive the HMS 80:20 scrap (Heavy, Med), and CR Sheet cutting prices traded in the region.
After undertaking an extensive consultation period that began on May'20, SteelMint has launched this index with the below specifications.The Index follow the International Organization of Securities Commissions (Iosco) standards and guidelines.
Index: India Domestic Steel Scrap Index, DAP, Mandi Gobindgarh
Quality: Steel Melting Scrap End Cutting (Rebar/Struc) (98% Yield)
Quantity: Minimum 50-100 t
Location: DAP (Delivered at Plant), Mandi Gobindgarh
Unit: INR/t
Payment terms: Immediate (0-3 days) after delivery
Publication: Daily at 17:00 PM (IST)
Assessment: Steel Melting Scrap HMS 80:20, DAP Mandi Gobindgarh
Quality: HMS 80:20 (94-96% Yield)
Quantity: Minimum 50-100 t
Location: DAP (Delivered at Plant), Mandi Gobindgarh
Unit: INR/t
Payment terms: Immediate (0-3 days) after delivery
Publication: Daily at 17:00 PM (IST)
The first date of assessment for the India Domestic Steel Scrap Index will be on Wednesday Oct 21. The price will be published on a daily basis at 17:00 pm India Standard time. Today's index stands at INR 27,200/t , DAP, Mandi Gobindgarh
To see SteelMint's Melting Scrap Assessment, pricing methodology and specification documents, Click here
Scrap Grade and Spread Calculation:
| Melting Scrap Grade | Yield | Spread (Difference from Basic) |
| HMS Old Scrap | 88-90% | Basic |
| HMS 80-20 (Selected) | 94-96% | Basic + 2,000-2,500 |
| End Cutting (Structure/Rebar) | 97-98% | Basic + 3,700-4,000 |
| CR Sheet Cutting | 98% | Basic + 4,700-4,900 |
Prices in INR/t, DAP (Delivered at Plant), Source: SteelMint Research
Updated: Week 43 (19 Oct - 25 Oct, 2020)
Steel Melting Scrap Assessment as on 21st Oct'20
| Melting Scrap Grade | Yield | Price | Min | Max |
| HMS 80-20 (Selected) | 94-96% | 26,000 | 25,500 | 26,500 |
| End Cutting (Structure/Rebar) INDEX | 97-98% | 27,200 | 27,200 | 27,500 |
| CR Sheet Cutting | 98% | 28,300 | 28,200 | 28,400 |
Prices in INR/t, DAP (Delivered at Plant)
What is SteelMint Indian scrap index - SteelMint's assessment of Mandi scrap reflects the prices of different melting HMS grade generated and traded in the domestic market. SteelMint gathers and verifies information from buyers and sellers active in the physical spot market. The data obtained by SteelMint, are normalized for yield, dimensions, density, location and other terms of trade to the specifications.
For details Click here
Why this index? India's National Steel Recycling policy mentioned that the efficient use of scrap for steel production becomes very crucial for India as 35-40% share has been envisaged from scrap-based steel production in the journey of 300 mn t pa by 2030. This shall increase the requirement of steel scrap sharply from the present level of around 30 mnt.
Methodology - Market data, including deals, bids, and offers that meet the delivery and quality criteria are considered for price assessments. The highest importance in the price calculation process is assigned to confirmed deals (T1) where either a buyer or seller has provided details of the transaction. Deals of only reputed and trustworthy producers and trading firms are included in the price collection and calculation process. Indicative prices, confirmed bids and offers are also considered valuable for the pricing process (T2). The index has been calculated using an average of T1 and T2 price inputs.
To provide feedback on this index or if you would like to contribute by becoming a data partner, please contact - abhishek.bhalla@steelmint.com
